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  1. KAPS's Avatar
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       #1  
    The below is a two page article.
    http://www.investors.com/NewsAndAnal...4884&ven=yahoo

    Apple, Facebook Threaten Verizon, AT&T Texting Sales

    Free texting apps on smartphones seem likely to siphon away a key revenue source for wireless phone companies, and Apple's new iCloud might speed that change.

    The question is how fast free texting might take hold.

    Free text messaging apps, such as WhatsApp and textPlus, are growing in popularity, especially among younger users. For some smartphone users, these free software applications could replace the short text messaging services (SMS) offered by wireless firms, analysts say, or at least cut down on usage.

    Alarm bells sounded in the wireless industry in May after Dutch carrier KPN reported that text messages sent per customer fell 8% in the first quarter from a year earlier. KPN blamed social networking apps, in particular WhatsApp.

    In the U.S., the number of text messages per subscriber fell sequentially for the first time in Q1, says UBS analyst John Hodulik.

    A decade ago, text messaging accounted for the bulk of data revenue for wireless phone companies. They've since expand data services to Internet access, games and more. But SMS is still a high-margin cash cow. It accounted for roughly 12% to 13% of total wireless services revenue for Verizon Wireless and AT&T (T), the two biggest U.S. wireless carriers, in the first quarter, estimates Bernstein analyst Craig Moffett.

    He says Facebook's purchase of group messaging service Beluga in March puts the leading social network into competition with wireless firms.

    And there's more for wireless firms to fret about. On Monday, Apple (AAPL) unveiled its "iMessage" instant-messaging service as part of its move into cloud-based products. While iMessage, due out this year, targets BlackBerry maker Research In Motion's (RIMM) messaging services, it also looms as a threat to wireless firms, analysts say.

    What's clear amid the rise of texting apps like WhatsApp, Facebook's Beluga purchase and the arrival of iMessage is that wireless firms will no longer dominate texting services, says Pamela Clark-Dickson, a U.K.-based analyst at market research firm Informa Telecoms & Media.
  2. #2  
    I would say yes. I have gotten all my family and close friends to switch to Kik.

    Since we're all iPhone owners, when iOS 5 rolls out it will automatically switch all of us to iMessage.

    Since using Kik, I dropped from roughly 2,000 texts a month to using on average 50 a month.
    Last edited by barkerja; 06/10/2011 at 02:09 AM.
  3. #3  
    If the carriers weren't gouging, this wouldn't have happened this fast. People are using their data to send texts with those apps, and that's how it should have been to begin with. Remember those reports that say it truly cost carriers almost nothing to text?
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  4. #4  
    Carriers were making too much money off of texting anyway. Some charging to send and receive! Imagine if they were more progressive about messaging services and had their own BBM style service way back when...
  5. #5  
    Not on Sprint, unlimited text.
  6. #6  
    Thanks for the article!

    It appears that many of us might be moving from Sprint to follow WebOS to either AT&T or Verizon, and these free text messaging features may help ease the cost of the transition.
  7. #7  
    Quote Originally Posted by netwrkr9 View Post
    Not on Sprint, unlimited text.
    It's not about unlimited vs. limited but rather the cost one pays for SMS period. I save $15/mo by not having unlimited SMS.
  8. #8  
    No I don't think its obsolete, a majority of everyone I know does not have a Smartphone so they can't use these services. Although a large amount of people have Smartphones everyone does not have one.
  9. #9  
    Quote Originally Posted by barkerja View Post
    It's not about unlimited vs. limited but rather the cost one pays for SMS period. I save $15/mo by not having unlimited SMS.
    We save $20/line/month BECAUSE we have unlimited messaging. Verizon gave us a promo that if we ran all data phones and upgraded to a plan with unlimited messaging they'd do a $20 per line credit each month. The end result was we moved from 2 phones with a $5 per line limited messaging to all phones having unlimited messaging plus added a data line to one of the phones and dropped our total monthly bill by $50.


    As for the usefulness of SMS, when roaming through Canada or when going through extremely low signal areas SMS can be a HUGE benefit for both saving money and being able to stay in contact. SMS is far from obsolete for North America that's for sure.
  10. #10  
    Quote Originally Posted by Orion Antares View Post
    We save $20/line/month BECAUSE we have unlimited messaging. Verizon gave us a promo that if we ran all data phones and upgraded to a plan with unlimited messaging they'd do a $20 per line credit each month. The end result was we moved from 2 phones with a $5 per line limited messaging to all phones having unlimited messaging plus added a data line to one of the phones and dropped our total monthly bill by $50.


    As for the usefulness of SMS, when roaming through Canada or when going through extremely low signal areas SMS can be a HUGE benefit for both saving money and being able to stay in contact. SMS is far from obsolete for North America that's for sure.
    If you have a special deal or arrangement then yes, it skews what is being discussed here.

    By the way, SMS uses the same pipeline as normal data on a phone. If you don't have data access you don't have SMS access.
  11. #11  
    Quote Originally Posted by barkerja View Post
    If you have a special deal or arrangement then yes, it skews what is being discussed here.

    By the way, SMS uses the same pipeline as normal data on a phone. If you don't have data access you don't have SMS access.
    Incorrect. SMS uses the same line as voice service. MMS uses the data line.

    Hence why when you're on a phone call on a CDMA service you can still send and receive SMS even though your data connection is disabled.
  12. #12  
    Quote Originally Posted by barkerja View Post
    It's not about unlimited vs. limited but rather the cost one pays for SMS period. I save $15/mo by not having unlimited SMS.
    Included in Sprints plan along with other things llike free navigation.
  13. #13  
    not a chance. it's too profitable.
    You come at the king. You best not miss.
  14. #14  
    Better wording might be "are the carriers about to lose their exclusive cash cow of text messaging?", lol. True, SMS isn't obsolete but the carriers gouging days may be over unless they get away with blocking apps(they have tried this in Europe). People are still texting and IMing with those apps, they just aren't getting bent over anymore with texting plans that are technically a joke.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  15. #15  
    Do Kik, iMessage or any others have an API that would enable development of a webOS client? We have Mojo Messenger which has great potential, but won't grow unless we can connect with our friends on other devices. It would also help in converting people to webOS.
  16. #16  
    Quote Originally Posted by The Phone Diva View Post
    Better wording might be "are the carriers about to lose their exclusive cash cow of text messaging?", lol. True, SMS isn't obsolete but the carriers gouging days may be over unless they get away with blocking apps(they have tried this in Europe). People are still texting and IMing with those apps, they just aren't getting bent over anymore with texting plans that are technically a joke.
    They might be losing the SMS cash cow but they're replacing it with capped data tiers.

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